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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 3, 2019 <br />TITLE: <br />APPROVE AN AMENDMENT TO THE <br />AGREEMENT WITH SINGLE POINT <br />ALLIANCE, INC., IN THE AMOUNT OF <br />$260,000 TO PROVIDE A CENTRAL <br />STORES CONSIGNMENT INVENTORY <br />PROGRAM <br />(SPECIFICATION NO. 11-059) <br />(STRATEGIC PLAN NO. 6, 1, C) <br />CITY�MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager to amend the agreement with Single Point Alliance, Inc., for a <br />consignment inventory program in the amount of $250,000, for a new total annual amount not to <br />exceed $917,500, and extend the term by four months for a new agreement expiration date of <br />January 31, 2020, subject to non -substantive changes approved by the City Manager and City <br />Attorney. <br />DISCUSSION <br />Facility management recently transitioned from the Finance and Management Services Agency <br />to the Public Works Agency. Central Stores is part of facility management, and is responsible for <br />locating, purchasing and maintaining an inventory of parts and supplies used for City operations <br />under a consignment inventory program. Under this program, Single Point Alliance, Inc., stocks <br />the warehouse with inventory that remains their property until the inventory items are issued to <br />end -users. A consignment inventory program for the Central Stores operation has provided <br />several benefits, including reduced inventory costs, discounted pricing, and other soft cost <br />savings. <br />On December 17, 2012, the City Council approved the execution of a two-year agreement with <br />Single Point Alliance, Inc. with two two-year renewal options to provide a consignment inventory <br />program for the Central Stores Division. The term of the agreement commenced on October 1, <br />2013, and will expire on September 30, 2019. To ensure the continued services, staff <br />recommends extending the current agreement terms for an additional four -month period to <br />terminate on January 31, 2020, to allow for a new Request for Proposals (RFP) to be issued. <br />Staff anticipates releasing an RFP for consignment services in the next thirty days. <br />25F-1 <br />